SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2021 Supreme(Online)(KER) 25434

HIGH COURT OF KERALA
ANIL K. NARENDRAN, K. Babu, JJ
RAGHUNATHAN NAIR, – Appellant
Versus
BOBBY.A.THOMAS, – Respondent
RFA/21/2019



Advocates:
P.B.KRISHNAN, P.M.NEELAKANDAN, P.B.SUBRAMANYAN, SABU GEORGE, MANU VYASAN PETER, JACOB P.ALEX, JOSEPH P.ALEX, MANU SANKAR P.

Trial courts must address all framed issues to ensure fair adjudication and prevent prejudicial outcomes for plaintiffs.

Headnote:

Specific Performance - Contract Law - Section 96, Order XLI Rule 1, Order II Rule 2, Order XIV Rule 2 - The court emphasized the importance of addressing all framed issues, as the trial court's failure to adjudicate necessary issues due to procedure missteps prejudiced the plaintiff's rights, leading to the decision to remand the case for a fresh trial.

Fact of the Case:

The plaintiff sought specific performance of a property sale agreement after advancing substantial payment. The defendants denied execution and claimed the agreement was forged, leading to litigation over the agreement's validity and subsequent actions firing multiple suits.

Finding of the Court:

The court found the trial court erred in dismissing the suit solely on the issue of maintainability under Order II Rule 2 C.P.C., without addressing other critical issues raised during the trial, which caused prejudice to the plaintiff.

Issues: The main issues were whether the defendants executed the sale agreement, received payments, the plaintiff's readiness, the existence of a sustainable cause of action, and the eligibility for specific performance.

Ratio Decidendi: The court held it is crucial for trial courts to adjudicate all issues, especially when a case involves both law and fact, to ensure fair trial rights and proper adjudication of parties' claims.

Final Decision: The appeal is allowed; the original suit is remanded for trial afresh.

JUDGMENT

K.BABU, J.

This appeal is directed against the judgment and decree dated 31.10.2018 passed by the Subordinate Judge's Court, Chengannoor in O.S.No.37 of 2012. The plaintiff who lost his case in the Court below, has preferred this appeal under Section 96 read with Order XLI Rule 1 of the Code of Civil Procedure, 1908 (for short, 'C.P.C').

2. The plaintiff instituted the original suit seeking specific performance of a contract in respect of the plaint schedule property.

3. Defendant No.2 is the mother of defendants 1 and 3.

They are the owners of the plaint schedule property. On 07.06.2010, defendants 1 and 2 entered into an agreement for sale in respect of the plaint schedule property with the plaintiff for a total consideration of Rs.50 lakhs. The agreement for sale was executed by defendants 1 and 2 with the knowledge and concurrence of defendant No.3, who was then working abroad. The time for performance was fixed as 11 months. Defendants 1 and 2 received Rs.10 lakhs as advance on the date of the agreement, and thereafter, they received amounts on different dates totalling a sum of Rs.31 lakhs. The date of performance of the agreement was extended to 30.11.2011. Subsequently, on 03.08.2010, defendants 1 and 2 received Rs.3 lakhs more from the plaintiff and executed a document acknowledging the receipt of the amount. Thereafter, the defendants did not come forward to execute the sale deed, in spite of repeated demands of the plaintiff. The defendants instituted O.S.No.308 of 2011 and obtained an interim injunction to restrain the plaintiff from entering into the plaint schedule property. Even after that, the defendants sought time for performing the agreement for sale. But at the same time, they tried to sell off the properties to third parties, against which the plaintiff filed a suit to restrain them from alienating the property to others in violation of the agreement for sale. The plaintiff has always been ready and willing to perform his part of the agreement by paying the balance sale consideration. The plaintiff intimated his readiness and willingness to the defendants, but they refused to perform their part of the contract. Hence the plaintiff instituted the original suit seeking specific performance of the contract.

4. Defendants 1 and 2 resisted the claim of the plaintiff.

They denied the execution of the agreement for sale. According to the defendants, the alleged sale agreement is a forged one made by the plaintiff using the blank signed stamp papers procured from the defendants when they borrowed a sum of Rs.25 lakhs from him to discharge certain liabilities. The plaintiff had obtained papers with their signatures affixed in revenue stamps at the time of the abovesaid transaction. He had also obtained blank signed cheque leaves of the wife of defendant No.1. The defendants had paid a sum of Rs.30 lakhs as interest for the amount borrowed from the plaintiff. But the plaintiff demanded increase in interest and required the defendants to pay a further sum of Rs.31 lakhs to clear the liability. The defendants never thought of selling the plaint schedule property to the plaintiff, which is worth more than Rs.50 lakhs. The plaint schedule property is the only asset of the defendants, where they are residing. Defendant No.3, who has a co-ownership right over the property, is not a party in the agreement for sale. Hence it cannot be executed. The defendants instituted O.S No.308 of 2011 to prevent the high-handedness of the plaintiff under cover of the forged agreement for sale. The Plaintiff also filed O.S No.210 of 2012 to restrain them from alienating the plaint schedule property ignoring the forged agreement for sale. The plaintiff is not entitled to get specific performance as prayed for.

5. Defendant No.3 filed written statement contending that he has no knowledge about the execution of the agreement in respect of the plaint schedule property. According to him, he never executed such an agreement for sale.

6. T

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top